1. This is a take-home group assignment where you are to use basic Excel to solve the question. This assignment contributes to 5% of your total marks.
2. Submit only one answer per group. The answer must be submitted via Google Classroom by Friday, 30^th November 2020, 11.59 PM
3. All members must participate in the discussion and preparation of the answer. Discussion must be done in English as your group members are not only Malaysians.

Alam Damai Sdn. Bhd. has its accounting year ends on 30 June every year. Below is the company’s trial balance as at, 30 June 2020:

	Debit		Credit
	RM		RM
Property, plant and equipment (net)	880,000
Inventory	45,800
Trade receivables	26,900
Cash and cash equivalent	78,600
Trade and other payables			32,500
Unearned sales revenue			21,600
5% Bank loan, short term			60,000
Share capital			400,000
Retained earnings (1/7/2019)			218,400
Revaluation reserve (1/7/2019)			200,000
Dividends	64,000
Sales			591,700
Cost of sales	214,700
Administrative expenses	132,900
Distribution expenses	117,300
Income tax expense	18,600
Other income			54,600
	1,578,800		1,578,800

The transactions below have occurred during the year ended 30 June 2020 but have not been recorded:

1. RM 3,400 of other income has been earned in May 2020 but has not been recorded.
2. At the year end, income tax expense RM1,440 has not been recorded as it has not been paid yet.
3. RM 12,000 of the unearned sales revenue has been earned at, 30 June 2020.
4. The bank loan was taken on 1 September 2019. Finance cost on the bank loan is accrued at, 30 June 2020.
5. Property, plant and equipment consists of the following:

	Cost		Accumulated Depreciation
	RM		RM
Freehold land	420,000		-
Building	400,000		158,400
Machinery	388,000		169,600
	1,208,000		328,000

The building is depreciated on straight line basis over its estimated useful life of 50 years. The building is expected to have a scrap value of RM80,000.

The machinery is depreciated using diminishing balance method of 20% on book value.

Depreciation of building is an administrative expense while depreciation of machinery is included in cost of sales.

6. In June 2020, the company acquired a franchise for RM60,000. In addition, the company incurred legal fee of RM2,400 during the acquisition. Both are paid by cash but are unrecorded at year end. The estimated useful life of the franchise is 12 years. Amortisation of the franchise is calculated on a yearly basis and is included in cost of sales.

Required:

1. Prepare journal entries to record the above adjusting entries.
2. Prepare a statement of profit or loss and other comprehensive income and a statement of changes of equity for the year ended 30 June 2020, and a statement of financial position as at that date.

Answer rating: 100% (QA)

unadjusted Adjustments Adjusted Dr Cr RM RM Property plant and equipment net 880000 50080 829920 Franchise 62400 433 61967 Inventory 45800 45800 Trade ... View the full answer